7th Pay Commission: In 3 states including Uttar Pradesh, vigorous protests are going on for restoration of old pension. Recently old pension was restored in Chhattisgarh and Rajasthan.
7th Pay Commission: Central employees are demanding to increase the minimum basic pay from Rs 18000 to Rs 26000 under the 7th Pay Commission (7th Pay Commission). But, the state employees have intensified the demand for restoration of Old Pension Scheme (OPS). In 3 states including Uttar Pradesh, preparations for vigorous protest are going on for restoration of old pension. Recently old pension was restored in Chhattisgarh and Rajasthan.
The employees are hopeful that the government will pay heed to their demand and re-implement OPS. The Old Pension Scheme was implemented from 1st April 2004. After this the New Pension Scheme (NPS) came into force. However, the employees are not satisfied with this. They consider the old pension scheme to be more beneficial and long-term. Let us know the 3 benefits of old pension scheme.
What are the 3 big benefits of old pension scheme?
1- OPS was that pension scheme, in which pension was made on the basis of last drawn salary.
2- With the increase in inflation rate in OPS, DA (Dearness Allowance) also increased.
3- Even when the government implements the new Pay Commission, it increases the pension.
What is available in NPS?
New Pension Scheme (NPS) has been implemented for the first time in the states along with the Center from April 2004. New employees in NPS will not get the declared benefits of pension and family pension at the time of retirement like old employees. In this scheme 10% contribution of salary and dearness allowance is taken from new employees. The same contribution has to be made by the employer i.e. the State or Central Government or the concerned autonomous educational institution.
New scheme implemented in 2004
1- OPS was that pension scheme, in which pension was made on the basis of last drawn salary.
2- With the increase in inflation rate in OPS, DA (Dearness Allowance) also increased.
3- Even when the government implements the new Pay Commission, it increases the pension.
What is available in NPS?
New Pension Scheme (NPS) has been implemented for the first time in the states along with the Center from April 2004. New employees in NPS will not get the declared benefits of pension and family pension at the time of retirement like old employees. In this scheme 10% contribution of salary and dearness allowance is taken from new employees. The same contribution has to be made by the employer i.e. the State or Central Government or the concerned autonomous educational institution.
New scheme implemented in 2004
The Central Government had implemented the New Pension Scheme in the year 2004. Under this, separate accounts were opened for the funds of the New Pension Scheme and fund managers were also appointed for the investment of the fund. If the return of investment of pension fund is good, then new employees can also get good amount in future at the time of retirement as compared to the old scheme of provident fund and pension. But the employees say that the return of investment of pension fund will be better, how is this possible. That’s why they are demanding to implement the old pension scheme.
